A retired couple in Waterloo learned the hard way that their homeowners insurance coverage didn't cover a burst fire sprinkler pipe. If you have home fire sprinklers, read this article and call your homeowners insurance rep to make sure you're covered.

In January 2014, a retired Waterloo couple were staying in their vacation home in Florida when a fire sprinkler pipe froze and burst. They came home to four floors of their townhouse destroyed. Their home insurance company denied their claim, leaving the $160k in damages to the couple (both 79).

The problem lies here: The Ontario fire code says that fire sprinklers must be in working order at all times. The insurance policy says that if the resident is not home for four consecutive days, the water must be turned off and drained. There was no winning for the couple.

The couple had to take a second mortgage on their home to pay for the damage.

They filed a lawsuit against the insurance company; however, their attorney said it isn't likely that they can win due to the four day clause in their insurance. They are now trying to cancel the claim because, to continue, would cost another $200k in legal fees.

Let this be a lesson. If you have fire sprinklers, verify that you are covered in case something happens.